TORONTO, May 07, 2025 (GLOBE NEWSWIRE) — Sprott Inc. (NYSE/TSX: SII) (“Sprott” or the “Company”) today announced its financial results for the quarter ended March 31, 2025.
Management commentary
“Sprott’s Assets Under Management (“AUM”) ended the first quarter of 2025 at $35.1 billion, up 11% from $31.5 billion as at December 31, 2024,” said Whitney George, Chief Executive Officer of Sprott. “Our AUM growth during the quarter was driven by surging gold prices and strong inflows to our physical gold and silver strategies. During the first three months of the year, we benefited from over $3.1 billion of market value appreciation. We also delivered approximately $407 million of net flows. Subsequent to quarter-end, we generated another $816 million of net flows, primarily into our flagship Sprott Physical Gold Trust and benefited from $629 million of market value appreciation, bringing our AUM to $36.5 billion as at May 2, 2025, up 4% from March 31, 2025”.
“While financial markets have been volatile in 2025, at Sprott we are fortunate to be extremely well positioned with an asset base divided between precious metals and critical materials. We have a balanced product suite that offers both safe havens and growth opportunities – all of which offer some inflation protection. We are in a strong position to create value for our clients and shareholders in any environment,” continued Mr. George.
Key AUM highlights1
- AUM was $35.1 billion as at March 31, 2025, up 11% from $31.5 billion as at December 31, 2024. On a three months ended basis, we benefited from strong market value appreciation and net inflows to our precious metals physical trusts which were partially offset by weaker market valuations of our critical materials products.
Key revenue highlights
- Management fees were $40 million for the quarter, up 9% from $36.6 million for the quarter ended March 31, 2024. Net fees were $35.6 million for the quarter, up 9% from $32.7 million for the quarter ended March 31, 2024. Our revenue performance in the quarter was primarily due to higher average AUM on strong market value appreciation and inflows to our precious metals physical trusts, partially offset by ongoing weaker market valuations of our critical materials product offerings.
- Commission revenues were $0.3 million for the quarter, down 73% from $1 million for the quarter ended March 31, 2024. Net commissions were $0.2 million for the quarter, down 64% from $0.5 million for the quarter ended March 31, 2024. Commission revenue was lower in the quarter mainly due to a lack of at-the-market (“ATM”) activity in our critical materials physical trusts.
- Finance income was $1.4 million for the quarter, down 23% from $1.8 million for the quarter ended March 31, 2024. The decrease in the quarter was due to lower income generation in co-investment positions we hold in our LPs managed in our private strategies segment.
Key expense highlights
- Net compensation expense was $17.5 million for the quarter, up 8% from $16.1 million for the quarter ended March 31, 2024. The increase in the quarter was primarily due to higher incentive compensation on increased net fee generation. Our net compensation ratio was 47% in the quarter, unchanged from this same time last year (March 31, 2024 – 47%).
- SG&A expense was $4.1 million for the quarter, down 1% from $4.2 million for the quarter ended March 31, 2024. The decrease in the quarter was primarily due to lower marketing costs.
Earnings summary
- Net income for the quarter was $12 million ($0.46 per share), up 3% from $11.6 million ($0.45 per share) for the quarter ended March 31, 2024. Our earnings in the quarter benefited from higher average AUM on strong market value appreciation and inflows to our precious metals physical trusts partially offset by ongoing weaker market valuations of our critical materials product offerings.
- Adjusted EBITDA was $21.9 million ($0.85 per share) for the quarter, up 11% from $19.8 million ($0.78 per share) for the quarter ended March 31, 2024. Adjusted EBITDA in the quarter benefited from higher average AUM on strong market value appreciation and inflows to our precious metals physical trusts partially offset by ongoing weaker market valuations of our critical materials product offerings.
Subsequent events
- Subsequent to quarter-end, as at May 2, 2025, AUM was $36.5 billion, up 4% from $35.1 billion as at March 31, 2025. Our performance subsequent to quarter-end was the result of $0.8 billion of net inflows and $0.6 billion of market value appreciation, primarily in our physical gold trust.
- On May 6, 2025, the Sprott Board of Directors announced a quarterly dividend of $0.30 per share.
1 See “non-IFRS financial measures” section in this press release and schedule 2 and 3 of “Supplemental financial information”
Supplemental financial information
Please refer to the March 31, 2025 quarterly financial statements of the Company and the related management discussion and analysis filed earlier this morning for further details into the Company’s financial position as at March 31, 2025 and the Company’s financial performance for the three months ended March 31, 2025.
Schedule 1 – AUM continuity
| 3 months results | |||||||
| (In millions $) | AUM
Dec. 31, 2024 |
Net
inflows (1) |
Market
value changes |
Other net
inflows (1) |
AUM
Mar. 31, 2025 |
Net management
fee rate (2) |
|
| Exchange listed products | |||||||
| – Precious metals physical trusts and ETFs | |||||||
| – Physical Gold Trust | 8,608 | 475 | 1,649 | – | 10,732 | 0.35% | |
| – Physical Silver Trust | 5,227 | 80 | 928 | – | 6,235 | 0.45% | |
| – Physical Gold and Silver Trust | 5,013 | (162) | 913 | – | 5,764 | 0.40% | |
| – Precious Metals ETFs | 354 | 43 | 119 | 2 | 518 | 0.28% | |
| – Physical Platinum & Palladium Trust | 168 | 14 | 14 | – | 196 | 0.50% | |
| 19,370 | 450 | 3,623 | 2 | 23,445 | 0.39% | ||
| – Critical materials physical trusts and ETFs | |||||||
| – Physical Uranium Trust | 4,862 | – | (600) | – | 4,262 | 0.31% | |
| – Critical Materials ETFs | 2,020 | 90 | (403) | – | 1,707 | 0.50% | |
| – Physical Copper Trust | 90 | – | 10 | – | 100 | 0.33% | |
| 6,972 | 90 | (993) | – | 6,069 | 0.37% | ||
| Total exchange listed products | 26,342 | 540 | 2,630 | 2 | 29,514 | 0.38% | |
| Managed equities (3) | 2,873 | 7 | 525 | (27) | 3,378 | 0.82% | |
| Private strategies | 2,320 | (115) | (20) | – | 2,185 | 0.83% | |
| Total AUM (4) | 31,535 | 432 | 3,135 | (25) | 35,077 | 0.46% | |
| (1) See “Net inflows” and “Other net inflows” in the key performance indicators and non-IFRS and other financial measures section of the MD&A. | |||||||
| (2) Net management fee rate represents the weighted average fees for all funds in the category, net of fund expenses. | |||||||
| (3) Managed equities is made up of primarily precious metal strategies (56%), high net worth managed accounts (37%) and U.S. value strategies (7%). | |||||||
| (4) No performance fees are earned on exchange listed products. Certain managed equities products earn either performance fees based on returns above relevant benchmarks or earn carried interest calculated as a predetermined net profit over a preferred return. Private strategies LPs primarily earn carried interest calculated as a predetermined net profit over a preferred return. | |||||||
Schedule 2 – Summary financial information
| (In thousands $) | Q1
2025 |
Q4
2024 |
Q3
2024 |
Q2
2024 |
Q1
2024 |
Q4
2023 |
Q3
2023 |
Q2
2023 |
||||||||
| Management fees | 39,989 | 41,441 | 38,968 | 38,325 | 36,603 | 34,485 | 33,116 | 33,222 | ||||||||
| SG&A recoveries from funds | (279 | ) | (280 | ) | (275 | ) | (260 | ) | (231 | ) | (241 | ) | (249 | ) | (282 | ) |
| Fund expenses | (2,464 | ) | (2,708 | ) | (2,385 | ) | (2,657 | ) | (2,234 | ) | (2,200 | ) | (1,740 | ) | (1,871 | ) |
| Direct payouts | (1,602 | ) | (1,561 | ) | (1,483 | ) | (1,408 | ) | (1,461 | ) | (1,283 | ) | (1,472 | ) | (1,342 | ) |
| Carried interest and performance fees | – | 2,511 | 4,110 | 698 | – | 503 | – | 388 | ||||||||
| Carried interest and performance fee payouts | – | (830 | ) | – | (251 | ) | – | (222 | ) | – | (236 | ) | ||||
| Net fees | 35,644 | 38,573 | 38,935 | 34,447 | 32,677 | 31,042 | 29,655 | 29,879 | ||||||||
| Commissions | 286 | 819 | 498 | 3,332 | 1,047 | 1,331 | 539 | 1,647 | ||||||||
| Commission expense – internal | (52 | ) | (146 | ) | (147 | ) | (380 | ) | (217 | ) | (161 | ) | (88 | ) | (494 | ) |
| Commission expense – external | (47 | ) | (290 | ) | (103 | ) | (1,443 | ) | (312 | ) | (441 | ) | (92 | ) | (27 | ) |
| Net commissions | 187 | 383 | 248 | 1,509 | 518 | 729 | 359 | 1,126 | ||||||||
| Finance income | 1,402 | 1,441 | 1,574 | 4,084 | 1,810 | 1,391 | 1,795 | 1,650 | ||||||||
| Co-investment income | 151 | 296 | 418 | 416 | 274 | 170 | 462 | 1,327 | ||||||||
| Less: Carried interest and performance fees (net of payouts) | – | (1,681 | ) | (4,110 | ) | (447 | ) | – | (281 | ) | – | (152 | ) | |||
| Total net revenues (1) | 37,384 | 39,012 | 37,065 | 40,009 | 35,279 |
|
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